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Zimbabwe Sets Gold-backed Digital Currency Price at $10 for Individuals

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Zimbabwe Sets Gold-backed Digital Currency Price at $10 for Individuals

  • Companies and other organizations will be charged a minimum of $5,000 per token.
  • The offer will open to investors on May 8 and end two days later.

Zimbabwe’s government has established a value for its digital tokens backed by gold. Starting on May 8, the nation will begin offering investors its own digital money backed by gold. Tokens will be sold to people for a minimum of $10. And to companies and other organizations for a minimum of $5,000.

The Reserve Bank of Zimbabwe announced on May 4 that dollars and local currency will be accepted for the purchase of digital currency tokens backed by gold. A 20% margin above the interbank mid-rate will be added to the local currency pricing.

Striving to Revive Economy

The offer will open to investors on May 8 and end two days later. The interbank market rate of interested buyers and sellers at which most banks are ready to purchase or sell currency to one another is termed the “mid-rate.” Market forces, such as supply and demand, provide a “midpoint” price between the purchasing and selling prices.

This rate serves as a standard in the financial industry. And it is often used as a basis for quoted exchange rates by banks and other financial organizations. On April 28, the Reserve Bank of Zimbabwe declared its intention to issue a digital currency backed by gold as legal money in the nation.

The southern African country has introduced digital tokens as the latest attempt to prop up its own currency. Which has lost 37% of its value versus the U.S. dollar on the official market so far this year, per Bloomberg.

Eight months after introducing gold coins as a store of value to assist strengthen the local unit. Zimbabwe’s Monetary Policy Committee approved the idea in March.

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